Doing business in the United Kingdom has fundamentally changed following Brexit. Since January 1, 2021, the UK has been considered a third country for EU purposes. At Musch Legal, we still see contracts between Dutch entrepreneurs and British parties that have not been updated. As a result, choice-of-law, choice-of-forum, and enforcement rights no longer function as before. A targeted review of contractual and operational aspects is essential.
What is the legal problem? (What changed due to Brexit?)
Since January 1, 2021, the UK has been legally considered a third country. Choice of law, choice of forum, recognition of judgments, and parallel imports require new analysis. Existing contracts sometimes still refer to EU instruments that no longer apply. VAT, customs, product regulations, and privacy have fundamentally changed. Those who have not adjusted this risk invalid clauses and unenforceable agreements.
What does the law say? (Which frameworks apply now?)
The EU-UK Trade and Cooperation Agreement (TCA, 2020) governs many commercial matters but not civil cooperation. The UK continues to apply Rome I (Regulation 593/2008) as retained law. Brussels I-bis has been replaced. As of 1 July 2025, the UK acceded to the Hague Judgment Convention 2019, which simplifies recognition for newly designated choice of forums. The Hague Choice of Forum Convention 2005 has been in force since 2021.
For data, the EU adequacy decision (June 2021) applies until at least 2027. British companies comply with the UK GDPR under the Data Protection Act 2018.
Subject
Before Brexit
After Brexit
Choice of Forum
Brussels I-bis
Hague Choice of Forum 2005 + Judgments 2019
Choice of law
Rome I
Rome I retained law
Judgments
Automatic EU recognition
Via Hague Convention on Judgments 2019
Data
GDPR direct
Adequacy Decision + UK GDPR
Goods
Free movement
Customs formalities + UKCA marking
Subject matter
Before Brexit
After Brexit
Choice of forum
Brussels I-bis
Hague Choice of Forum 2005 + Judgments 2019
Choice of law
Rome I
Rome I retained law
Judgments
Automatic recognition EU
Via Hague Judgment Convention 2019
Data
GDPR direct
Adequacy decision + UK GDPR
Goods
Free movement
Customs formalities + UKCA marking
What risks do companies face? (Which contracts are no longer valid?)
Existing forum selection clauses for British courts are no longer automatically recognized in EU Member States under Brussels I-bis. This makes the enforcement of British judgments more complex. British terms and conditions may conflict with EU notification and consumer protection law. Customs and product regulations require adjustment of delivery terms. Privacy requirements under GDPR and the UK Data Protection Act 2018 call for additional safeguards.
Practical example from our practice (How did we adapt a British supply chain?)
Musch Legal advised a Dutch exporter regarding installations for a British client based on a 2019 contract with a forum selection clause for the English High Court. In the event of a dispute, the client obtained an English judgment. Enforcement in the Netherlands proceeded via a new procedure under Section 431 of the Dutch Code of Civil Procedure — considerably slower than Brussels I-bis. Upon renegotiation, we chose NAI arbitration in The Hague under Dutch law — international enforceability via the 1958 New York Convention was arranged within two weeks.
What can you do? (What steps are you taking now?)
Update all UK contracts regarding choice of law, choice of forum, and dispute settlement. Consider arbitration for maximum international enforceability. Adapt delivery terms to customs and product regulations (UKCA marking). Assess data transfers against the GDPR and UK GDPR. For ongoing relationships: incorporate sanction clauses. Have ongoing contracts reviewed by Musch Legal.
Brexit and contracts with British companies